Cardiol Therapeutics gets 'Speculative Buy' rating as Leede Jones Gable initiates coverage

Leede Jones Gable has initiated coverage on Canadian biotechnology firm Cardiol Therapeutics Inc (TSE:CRDL) (OTCQX:CRTPF) with a ‘Speculative Buy’ rating. In a note Thursday, the research firm cited Oakville, Ontario-based Cardiol’s revenue potential from its ultrapure cannabidiol formulation Cortalex, which was launched last year through the Medical Cannabis by Shoppers portal. Leede Jones Gable analyst Douglas Loe wrote that the alliance should generate top-line growth while clinical trials – including the Phase II/III trial of its flagship product CardiolRx – continue in the background. READ: Cardiol Therapeutics files application to list on the Nasdaq stock exchange “Cannabidiol’s clinical prospects in cardiovascular disease are, perhaps surprisingly at least to us initially, quite well-documented in the medical literature in preclinical models of disease,” Loe wrote, “and our diligence thus suggests to us that Cardiol’s initiative to more fully test cannabidiol’s clinical prospects is justified and with strong prospects for value creation based on future Phase II/III efficacy signals that we expect to transpire during our forecast period. “What we found most striking in our investigation of cannabidiol’s medical prospects in cardiovascular disease was just how well-characterized its prospects actually were in this disease category, despite which few if any firms other than Cardiol are exploring this activity,” he added. The analyst cited a number of diseases that could potentially be treated with Cortalex, including coronavirus-associated cardiovascular disease, acute myocarditis and diastolic heart failure. Loe also noted that Cardiol’s strategic manufacturing alliance for CardiolRx with Purisys and Dalton Pharma Services provides competitive advantages in medical markets where cannabidiol purity is critical to clinical success. Shares of Cardiol were trading at C$4.31 in Toronto at the midday point Thursday and at US$3.41 over the counter. Contact Angela at angela@proactiveinvestors.com Follow her on Twitter @AHarmantas